SEC Settles with Valuation Firm in Latest Example of Gatekeeper Scrutiny
October 20, 2017
The SEC under former chair Mary Jo White stated quite clearly that it would take enforcement action not only against advisers and funds, but also against those it termed "gatekeepers:" attorneys, accountants, consultants and others. The agency’s recent settlement with a firm providing valuation services shows that scrutiny is alive and well under chair Jay Clayton.
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Failure to Base Valuation on Reasonable Assumptions May Lead to SEC Charges
August 4, 2017
An adviser may believe in the value of a portfolio company. But when the adviser managing private funds with an interest in that company seeks investors for that company by overstating the portfolio company’s and therefore the funds’ value, expect the SEC to come knocking.
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Valuation: Make Sure Third-Party Pricing Vendors Follow Industry Standards
April 7, 2017
Advisory firms may turn to third-party pricing services to provide valuation expertise that the adviser lacks. Don’t let that claim of "expertise" stop you from considering how that third party will performs its job before retaining it, however. Failure to do so may result in more than some unpleasant numbers – as one advisory firm found out.
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Adviser Settles Fair Value Calculation and Error Correction Allegations
October 21, 2016
If you’re going to fix a problem, make sure your fix will not land you in further trouble. That may be what one mutual fund adviser Calvert Investment Management is thinking after its October 18 settlement with the SEC.
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Multiple Disclosure Issues Lead to Enforcement Against Hedge Fund Manager
February 5, 2016
Disclosure is a basic requirement of most SEC regulations. If you want a visit by the SEC, failure to disclose, particularly when it occurs more than once, is one of the best ways to ensure that you get one.
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SEC Valuation Settlement Zeroes In On Start-up Purchases
January 29, 2016
Valuation remains a hot-button issue with the SEC. Consider the agency’s January 14 settlement with an investment company over charges that the fund unreasonably overstated the value of its interests in two companies it purchased, and that it misrepresented its valuation policy in doing so.
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Beware the Slippery Slope of Valuation Shortcuts
July 17, 2015
A hedge fund adviser its two owners on July 1 settled agency claims that they fraudulently inflated the value of client holdings in order to collect higher management and performance fees.
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Valuation: What Examiners Want to Know
May 1, 2015
Examiners follow the money. Valuation is where the money starts. Private funds in particular need to be concerned about examiner inquiries into valuation. Hedge fund managers have part of their compensation tied to the value of their portfolio. Private equity fund managers may want the NAV of their funds to be as high as possible when raising additional capital.
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Adviser Wants Trial by Jury: Tilton Sues SEC over Administrative Action
April 10, 2015
The SEC on March 30 filed an order instituting an administrative proceeding against advisory firm CEO Lynn Tilton. The agency claimed that Tilton and her Patriarch Partners advisory firms, which invest in distressed companies, misappropriated almost $200 million from clients by mischaracterizing the performance of fund assets.
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Private Investment Valuation: Protect Yourself with Documentation
January 1, 2015
It’s not just how you value hedge fund private investments, it’s ensuring you have adequate and appropriate documentation to support those valuations so your firm is protected.
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Internal Controls are Focus of SEC Action Against UK-Based Hedge Fund Adviser
December 21, 2013
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SEC Oppenheimer Case Shows Continuing Authority of Clover Capital Letter
August 22, 2013
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Insider Trading at a Mutual Fund: Look for an Answer this Fall
August 9, 2013
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Heartland: Lessons Learned
August 3, 2013
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Heartland: Appeals Court Raises Questions About SEC Case
August 3, 2013
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Heartland: Groundbreaking Mutual Fund Insider Trading Case Tossed Back to District Court
August 2, 2013
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Morgan Keegan Directors Settle SEC Valuation Charges
July 5, 2013
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